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Landlord Insurance – Coverage and Importance

A clear guide to what landlord insurance includes, what it doesn’t, and how to protect your rental income and assets.

What is landlord insurance or property owners insurance?

Let’s start with a common misconception: many landlords believe that having buildings insurance means they are fully covered, but this assumption could cost them thousands of pounds every year. Buildings insurance only protects the structure of a property and does not cover the items inside it, nor does it cover Loss of Rent, Property Owner’s Liability or Legal Expenses

When it comes to landlord's contents, a simple way to understand what building insurance covers is to imagine turning a property upside down and shaking it. Anything that would fall out is not covered by buildings insurance, which includes furniture, carpets, curtains and white goods.

Tenant contents insurance, which is taken out by the tenant, only covers the tenant’s own personal belongings and offers no protection to the landlord. Landlord Insurance is specifically designed to cover a landlord’s items within a furnished or semi-furnished property, including HMOs, and applies to both individual and company landlords. It provides protection against risks such as damage, theft and accidental damage.

In short, landlords need both building insurance and Landlord Insurance to be properly protected.

Landlord reviewing insurance contract with advisor 

What does landlord insurance really include?

People often think Landlord Insurance only covers contents such as their furniture, but most comprehensive policies include additional valuable protections that are equally important for landlords. As well as covering landlord-owned contents, cover usually includes:

Loss of rent

if the property becomes uninhabitable following an insured event, such as a flood

Property owner’s liability

in the event a tenant or their guest is injured, such as tripping over in the property

Legal expenses

that support landlords in disputes relating to the property, where the landlord needs to instruct a lawyer.

Combined together, these extras protect not just the physical contents of a property, but importantly, a landlord’s income, legal position, and financial exposure.

Which landlords are exposed if they don't have landlord insurance?

Every landlord is financially exposed - if it's furnished, these are not covered:

  • furniture (beds, sofas, wardrobes, tables and chairs);
  • soft furnishings (curtains, blinds, cushions, bedding and towels);

And whether it's let furnished or unfurnished items, these are not covered:

  • damage to white goods (fridges, washing machines, ovens, hobs, microwaves, air-conditioning units, heaters)
  • carpets & window dressings

These items are not covered under a standard building insurance policy.

As a result, landlords, without Landlord Insurance, are exposed to loss or damage, particularly in high-turnover rental markets such as London. This applies to

  • individual landlords letting a single furnished property,
  • corporate landlords operating blocks of flats,
  • landlords offering short lets or serviced accommodation where frequent guest turnover increases the likelihood of damage,
  • HMO landlords where multiple occupants significantly raise the risk of loss, theft or breakages.

Without Landlord Insurance in place, there is:

  • No recovery of damaged or stolen items
  • No rent if the property becomes uninhabitable
  • No liability or legal cover if a claim arises

Landlord insurance vs landlord buildings insurance

Understanding the distinction is critical, as the two policies protect very different things and are not interchangeable. Landlord Buildings Insurance only covers the physical structure of the property, including walls, floors, ceilings, the roof and permanent fixtures. Landlord Insurance, on the other hand, covers the landlord-owner items inside the property, such as furniture and carpets. One policy does not replace the other, and relying on building insurance alone leaves a landlord financially exposed.

Type of cover What is covered What is not covered
Landlord Buildings Insurance Walls, roof, floors, permanent fixtures Furniture, white goods, carpets, curtains, tenant’s belongings, loss of rent, owner’s liability, legal expenses
Landlord Insurance Landlord-owned contents inside the property PLUS loss of rent, owner’s liability, legal expenses Building structure, tenant’s personal belongings

What landlord insurance does not cover

Being aware of this helps to manage landlords' expectations and avoid rejected claims. While comprehensive Landlord Insurance does not cover:

  • Fair wear and tear
  • Gradual deterioration or lack of maintenance
  • Breakdown of appliances
  • Damage caused by pre-existing defects
  • Deliberate damage caused by the landlord

Explicit exclusions to be aware of

Claims are rejected every day because landlords assume building insurance covers their contents - but it simply does not.

  • Buildings Insurance does not cover sofas, beds, carpets, refrigerators, or washing machines.
  • Tenant contents insurance does not cover any items owned by the landlord.
  • Buildings Insurance does not cover landlord’s or tenant’s contents.

What can go wrong if you don't have landlord insurance?

Without Landlord Insurance, even a “minor” incident can lead to a massive cost. Here are a few examples:

Escape of water and leaks

Burst pipes, faulty washing machines or a leak from an upstairs flat can ruin carpets, warp a wood floor, destroy sofas, damage beds, and ruin appliances quickly.

Repair and replacement costs often run into thousands of pounds. Buildings Insurance would usually only cover damage to the structure, like the ceiling, but very little else.

Fire and smoke damage

Even small fires caused by short circuits, candles, and cigarettes can lead to smoke, fire and heat damage. Damage includes burnt flooring, smoke-damaged cabinets, melted wires and sockets. In such circumstances, a landlord will have to pay for the partial or full restoration of a property.

Vandalism and neglect

Deliberate damage, abandoned properties, or neglect can result in damaged interiors, including furnishings and fittings. Typical examples include stains on carpets, broken beds, sofas, and dining chairs; damaged doors and wardrobes, cracked mirrors and lamps. Damage is generally extensive, and landlords assume Buildings Insurance will cover this damage, but it won’t.

Theft by tenants and their guests

Furniture, white goods, and fittings supplied by a landlord are sometimes reported missing or stolen. Deposits rarely cover full replacement costs, especially for furnished homes as fair wear and tear will have to be allowed, and theft by occupants is only covered by Landlord Insurance.

Read more: Who pays for damage after a rented property burglary

Tenant damage (accidental and deliberate)

Broken furniture, stained or burnt carpets, warped wood floors, damaged beyond fair wear and tear, are the Tenant’s responsibility; however, without Landlord Insurance, it is very rare indeed for a landlord to get back the full cost.

Loss of rent

If there’s a major leak or a fire and the tenant moves out and stops paying rent, then the Landlord will only get rent paid with Landlord Insurance.

Accident in the Property

If the tenant or their visitors are injured in the property, by say tripping over then they could sue the Landlord, and only Landlord Insurance would cover this cost

Legal disputes

Any legal disputes, both with the tenant or the freeholder can be very costly and aren’t covered without Landlord insurance

What are the costs of damage to a landlord?

Here’s a table showing how much damage would cost a London landlord, along with approximate repair or replacement costs.

Type of damage Typical contents affected Replacement cost (approx.)
Escape of water Sofa, beds, carpets, appliances £6,000 - £15,000
Accidental tenant damage Furniture, flooring, fittings £5,000 - £10,000
Fire and smoke Kitchen units, white goods, soft furnishings £8,000 - £25,000
Theft Furniture, appliances, fittings £3,000 – £12,000
Vandalism Beds, wardrobes, carpets, fixtures £3,000 – £12,000

Typical content losses for different types and sizes of properties include:

1-Bed Furnished Flat

Item Cost (£)
Sofa & rug: £2,500
Bed & Mattress £2,000
Carpets & Underlay £2,000
Appliances £2,500
Total Loss: £9,000

2-Bed Family Rental

Item Cost (£)
Kitchen cabinets & appliances £12,000
Bed Furniture replacement £6,000
Curtains, carpets, fittings £4,000
Total Loss £22,000

HMO Room (Per Room)

Item Cost (£)
Bed & mattress £2,000
Wardrobe & desk £2,500
Carpet & fittings £4,000
Total Loss £8,500

Disclaimer: Costs are based on average UK landlord claims and vary depending on the severity and extent of damage

What are the most common landlord insurance claims?

  • Escape of water and leaks
  • Accidental tenant damage
  • Fire and smoke damage
  • Theft
  • Vandalism
  • Loss of Rent

As an experienced property partner of London landlords, Benham and Reeves works closely with insurers and brokers to arrange tailored cover for clients. We help landlords anticipate risks, advise on the right cover, and assist with claims when incidents occur. Insurance, by its very nature, covers unlikely eventualities; however, the costs mount up and are therefore a part of everyday property management.

What happens if a landlord doesn't have landlord insurance?

Without Landlord Insurance, there are severe financial and legal consequences, along with loss of rent due to repair downtime and extended void periods.

  • No payout for damage to contents - no payment for damage, theft, or loss.
  • Full replacement costs - replacing furniture, appliances, carpets, and fittings is payable by the landlord, often running into thousands of pounds.
  • Void periods - repairs and replacements often delay reletting, resulting in void periods and lost rent.
  • Loss of Rent - tenant will likely vacate if there’s major damage, such as a fire, resulting in no rent during repairs.
  • Legal disputes - disputes frequently arise when landlords attempt to recover costs from tenants, creating time-consuming legal issues with uncertain outcomes.
  • Tax inefficiencies - Uninsured repair and replacement costs are not treated as insured losses, complicating accounting and cash flow especially when completing UK tax returns for HMRC.

Loss of rent insurance vs rent guarantee insurance

Loss of Rent cover (included in Landlord Insurance) is totally different to Rent Guarantee insurance and protects against different things.

Loss of Rent - applies when a property is uninhabitable due to an insured event, such as a fire, flood, or major structural damage. In these circumstances, the insurer will compensate the landlord for lost rent while repairs are carried out, typically for a defined indemnity period (for example, up to 12 months).

Rent Guarantee Insurance - protects landlords against tenants who fail to pay rent. It is subject to the tenant passing referencing.

In short:

  • Loss of Rent covers property damage-related loss of income.
  • Rent Guarantee insurance covers tenant default

Both may be necessary, and one does not replace the other.

What is covered in our landlord insurance policy?

Our policy is designed to protect Benham and Reeves clients against multiple risks, including damage to furniture, and includes:

  • Landlord’s Contents: £10,000 / £20,000 / £30,000 Covering landlord-owned furniture, appliances, carpets, and fittings. For example: furniture damaged due to flooding or escape of water.
  • Loss of Rent: Up to £30,000 (12-month indemnity) Covering lost rent if the property becomes uninhabitable following an insured event. For example, a fire requiring extensive repairs before tenants can return.
  • Property Owner’s Liability: £2,000,000 Covering legal and compensation costs if a tenant or visitor is injured due to a defect in the property. For example, a tenant tripping and injuring themselves due to a loose tile.
  • Legal Expenses: £250,000 Covering the landlord’s legal costs associated with property-related disputes, subject to the terms and conditions of the policy

How much does our landlord's insurance cost?

Cost: From as little as £229.48 per year**

And if you have more expensive contents, you can upgrade the cover to £20,000 for only £10 per annum more.

For a cost that is often less than one week's rent, landlords can protect themselves against losses and liabilities that could otherwise take years to recover from, and that's not taking into account the stress it will have on a landlord personally.

Don’t wait for a claim to find out what isn’t covered.

Calculator estimating landlord insurance costs 

Without landlord insurance, London landlords are effectively self-insuring six-figure risks.

For minimal cost, Landlord Insurance protects against losses that could otherwise take years to recover from – or, in severe cases, threaten long-term investment viability.

**All premiums are subject to individual quotation and may vary depending on factors such as property type, location, level of cover selected, claims history, and occupancy type (for example, single let, HMO, or short let).

Protect your property, your income, and your peace of mind.

Landlord signing property insurance agreement 

How Benham and Reeves can help you get the right landlords' insurance

As your one-stop lettings and property management partner in London, Benham and Reeves take great pride in how we care about our Clients rental properties and their belongings as well as tenant safety and liability as a landlord.

Therefore, we work with specialist landlord insurers and brokers to ensure Landlords are fully covered.

If you would like insurance arranged on your behalf, simply contact us, and we can deduct the Insurance Premium from your rental payments.

Property insurance advisor explaining coverage to landlord 

Frequently asked questions

YES…every landlord should have it, whether it is furnished or unfurnished - if a landlord is providing furniture, white goods, carpets, or fittings,s then Landlord Insurance is essential, as Buildings Insurance does not cover these items and Tenant Contents insurance only covers the tenant's belongings. Landlord Insurance protects a landlord’s assets inside a property that would otherwise be completely uninsured, as well as protecting the Landlord’s income if the property were uninhabitable and covering legal disputes.

Landlord Insurance is designed for any landlord who lets a property to cover everything in the property, including tenant occupancy and damage. When compared to the cost of replacing furniture or appliances, or having zero rent due to a fire, or having to fund a costly legal dispute, premiums are a fraction of that cos,t and that doesn’t even take into account a landlord’s peace of mind to know they are covered.

Most Landlord Insurance policies cover accidental tenant damage and malicious damage. Fair wear and tear is excluded, but genuine accidents and damage are insured. But it will not cover the tenants' contents.

Theft of a landlord’s contents is covered, particularly where there is forced entry or clear evidence of a robbery or theft. This is not covered by tenant deposits alone and requires the correct Landlord Insurance policy.

Landlord Insurance is usually relatively low cost when compared with the risks and the value of your London property, with cover for £10,000 starting at only £229.48 per year. Note premiums vary depending on a number of things like property type, location, level of cover selected, claims history, and occupancy type (for example, single let, HMO, or short let).

Furnished properties have more furniture and therefore a higher exposure to damage, however most properties let in London have appliances, window dressings and flooring, all of which would not be covered if there was no Landlord Insurance. Clearly, you would need a lower level of cover as you wouldn’t need cover for items like sofas in an unfurnished property, but there are still a lot of expensive items which need to be insured and covering legal disputes and loss of rent in the case of a fire is the same whether the property is furnished or not.

Whether a rental property is semi or fully furnished, there is a high risk of losses to furniture items as well as appliances provided by the landlord. While the level of coverage will vary depending on the value of contents provided in the property, having a Landlord's Insurance is a must to protect against unfortunate losses.